Jeff Booth: How Entrepreneurs Can Harness the Power of Technological Deflation
What is technological deflation, and how can entrepreneurs take advantage of it? By combining already available and easily accessible technologies to facilitate the accelerated information flows that constitute value in the 21st Century: higher quality, faster speeds, lower costs. Jeff Booth explains.
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Key Takeaways and Actionable Insights
Technology reduces the labor factor, lowers costs, and frees up time.
These are the components of deflation: less labor and effort for any unit of output, faster speed, lower material costs, and re-allocation of time from lower to higher productivity activities.
The speed at which this technological change is happening is “staggering” in Jeff Booth’s words, and will accelerate. More and more time will be freed up to allocate to higher uses.
The result is deflation: higher quality for lower cost at faster speeds.
The only reason price deflation is not pervasive throughout the economy is the status quo governmental system.
Federal Reserve money printing, more and more debt, lower interest rates — these are actions designed to drive price inflation. This scheme defies the natural order of technological deflation. It is the great fight of our time, says Booth, to end the inflationary scheme.
But for entrepreneurs, the right action is to embrace and harness tech deflation.
There is tremendous leverage for entrepreneurs in the current economy of technological change.
Jeff uses his “folding analogy”. If you could fold a piece of paper 50 times, it would reach the sun. Technological change is at the early folding stage today, but each new fold doubles the growth rate and the impact.
The way for entrepreneurs to put this folding analogy to work for them is by combining technologies. Several folds at once.
One of Jeff’s examples is Elon Musk. In Jeff Booth’s words, Musk forecast thre
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